Term Life Insurance

Term life insurance can be an economical way to protect your loved ones in case of your passing. For most individuals, and especially for people in their younger years. This can be a very reasonable way to give you the peace of mind you need, to make sure the people you might leave behind will be OK. These policies are generally much less expensive than permanent life insurance.

For a 25 year old male, even one million dollars of life insurance may not be that expensive. As long as you are a healthy non-smoker, a $1,000,000 policy for 20 years could cost you as little as $400 per year. Thats only a little over a dollar a day. For women the cost can be lower than $400 per year. Smaller coverage amounts can obviously cost even less.

Term life insurance generally has a fixed annual cost for the course of the of policy. If during the policy the insured dies, the policy pays out the benefit to the beneficiary. One of the primary purposes of this type of insurance is to replace lost income if someone dies. This can allow loved ones left behind to be able to pay for expenses like a home, food, and even college expenses for children.

For insurance companies, one of the biggest differences between term and permanent life insurance is the fact that in most cases the insured individual will not die during the term of the policy, so the insurance company will have fewer cases where they need to payout benefits. This results in a much less expensive policy.